IMF Executive Board Removes Declaration of Censure on Argentina

Board praises important progress on CPI, asserts that Argentina now provides data in a manner consistent with its obligations under the Fund’s Constitution

The Executive Board of the International Monetary Fund (IMF) met today to consider the Managing Director’s report on Argentina’s progress in improving the
quality of the official data reported to the Fund for the Consumer Price Index (CPI).

Executive Directors praised the authorities’ resolve to address the methodological shortcomings of the CPI and important progress made on the specified
actions regarding the inflation data. The technical assistance relationship between staff and the authorities has been extremely cooperative and
productive. In light of this, the Executive Board concluded that Argentina’s CPI is now in line with international standards. Given that Argentina’s GDP
had already been considered in line with international standards at the Executive Board meeting that took place in August this year, the Executive Board
determined that Argentina is now providing information to the Fund on CPI and GDP data in a manner consistent with its obligations under the Fund’s
Articles of Agreement. As a result, the Executive Board adopted a decision lifting the Declaration of Censure and Statement of Concern.

At the conclusion of the meeting, IMF Managing Director Ms. Christine Lagarde stated:

“Today’s IMF’s Board decision to remove the Declaration of Censure is a testament to the extraordinary efforts made by the new Argentinean administration
to strengthen the national statistics agency and produce reliable and trustworthy data. I would like to commend the authorities for their commitment to
transparency and determination to improve the accuracy official data in such a short period.”

Background

In July 2011, Argentina was found in breach of its obligations under Article VIII, Section 5 due to its inaccurate provision of CPI and GDP data. In light
of Argentina’s failure to remedy its inaccurate provision, the Executive Board subsequently issued a Statement of Concern and Declaration of Censure on
September 17, 2012 and February 1, 2013, respectively, in accordance with the Fund’s legal framework.
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